Summary
Ross Stores, Inc. (ROST) reported a strong first quarter for fiscal year 2024, with significant year-over-year growth in sales and net earnings. Total sales increased by 8.1% to $4.86 billion, driven by a comparable store sales growth of 3%. Net earnings saw a substantial increase of 31.3%, reaching $488.0 million, translating to diluted earnings per share (EPS) of $1.46, up from $1.09 in the prior year period. This performance demonstrates the company's ability to navigate current macroeconomic challenges and deliver value to its core customer base. The company continues its strategic store expansion, opening 18 new stores in the quarter and planning for approximately 90 new store openings in fiscal 2024. Management highlighted improved cost efficiencies, with Cost of Goods Sold and Selling, General, and Administrative expenses decreasing as a percentage of sales. Furthermore, robust cash flow from operations and a strong liquidity position, including $4.7 billion in unrestricted cash, provide the company with significant financial flexibility for continued growth and shareholder returns through dividends and share repurchases.
Financial Highlights
49 data points| Revenue | $4.86B |
| Cost of Revenue | $3.49B |
| Gross Profit | $1.37B |
| SG&A Expenses | $776.28M |
| Operating Expenses | $4.22B |
| Operating Income | $591.11M |
| Net Income | $487.99M |
| EPS (Basic) | $1.47 |
| EPS (Diluted) | $1.46 |
| Shares Outstanding (Basic) | 331.26M |
| Shares Outstanding (Diluted) | 333.74M |
Key Highlights
- 1Total sales increased by 8.1% to $4.86 billion in Q1 FY2024, compared to $4.49 billion in Q1 FY2023.
- 2Comparable store sales grew by 3% year-over-year, indicating strong in-store performance.
- 3Net earnings surged by 31.3% to $488.0 million, with diluted EPS rising to $1.46 from $1.09.
- 4The company opened 18 new stores in Q1 FY2024 and plans to open approximately 90 new stores in fiscal 2024, continuing its expansion strategy.
- 5Cost of goods sold as a percentage of sales decreased by 140 basis points due to lower distribution, buying, and freight costs.
- 6Selling, general and administrative expenses as a percentage of sales decreased by 65 basis points due to higher sales and lower incentive compensation.
- 7The company maintained a strong liquidity position with $4.7 billion in cash, cash equivalents, and restricted cash, and had $1.3 billion available under its revolving credit facility.